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Polaroid files for Chapter 11 bankruptcy

Consumer electronics company Polaroid Corp said it had filed for Chapter 11 bankruptcy in order to facilitate its restructuring.

The maker of iconic instamatic cameras said its bankruptcy was due to events at Petters Group Worldwide, which has owned the company since 2005.

The founder of Petters is “under investigation for alleged acts of fraud that have compromised the financial condition of Polaroid and other entities owned by Petters Group,” the company said in a statement.

“Polaroid and its leadership team are not subjects of the ongoing investigation involving Petters Group,” Polaroid said.

The company said the restructuring should not impact its day-to-day operations and that it was not seeking additional debtor-in-possession financing.

“Polaroid has entered bankruptcy with ample cash reserves sufficient to finance the Company's reorganization under Chapter 11,” it said. (Reuters)